Living longer is more important than earning quickly! Intense polarization, widespread decline in individual stocks—couldn't this be an opportunity?

Living longer matters more than making money faster! With brutal fragmentation, individual stocks broadly falling—couldn’t this be an opportunity? Friend’s fear makes me happy; what is there to be afraid of in this market!

Today many friends suffered big losses, so I won’t analyze the details for everyone. I’ll just write something interesting!

Although the index doesn’t look like it’s fallen all that dramatically today (the SSE Composite is down less than 1%), if you traded with a full position today, the experience could feel like going through a market crash. More than 4,378 individual stocks across the whole market fell, and the money-making effect is extremely poor—this is the classic “you made money on the index but lost money on your trades.”

Feeling uncomfortable driving along, sold.

[Taogubaa]

In the morning, I didn’t do much—mainly locking in profits

1. Shenjian and Zai Sheng both hit another limit-up; I smashed on one and took a halfway position on the other. I won’t hold out for this kind of intraday limit-up stock again! Jihe Huagong’s severe underperformance forced us to lock in profits and part ways.

2. For convertible bonds, I followed a piece of trash—HaoYuan Convertible Bond. The burst power doesn’t reach, and the trading volume doesn’t reach either. If you push it up, you can only take profit and close the position.

3. New at the open today: Xin Guan Hailanxin. It hasn’t broken down yet! I placed a quick order near the close at around my cost price.

4. I’m watching YuNeng for 19 days—loved it for 17, hurt for 1. Today I kept watching it underwater for a bit longer than usual; leave a small base position. If it pops up, keep selling in batches as it rises and keep trimming positions!

5. Huadian Energy—love and hate; followed it for 4 days. I closed it near the end yesterday when it was down to the daily limit-off point and kept the position going. Today I opened low, took profits high, and closed it in a way that was basically doing charity. If you go out elsewhere, it could also be deep water and scorching hot—so it’s better to watch the long side all the way to the last two limit-downs smoothly!

Now there’s a popular way to play it. Today, the stocks that strongly hit limit-up—many friends chase them. The next day, they open deeply lower; many people cut losses. After cutting losses, the main forces take low-priced shares in the dark pool, and then big funds keep distributing on the same day, making all investors忍受 the pain as they cut. They get collected again and again—then on the next day they come with another weak-to-strong. The main force keeps breaking orders; small money buys and buys. Once it’s pushed up 8–10% and taps the board, it’s time to cook/exit. You see the volume looks ample, and they intentionally lure you in. When you enter at a high level, at the end of the day they suddenly smash it into deep water—again and again, they do the harvesting. The main force clearly has a whole team executing; different IDs split the order amounts differently. This is a high–emotional-intelligence kind of tactic.

There’s another popular way to play it: the main forces build hype through marketing tactics and the magic of the internet, creating the effects of all kinds of small and big internet celebrities. They manufacture heat to push the stock price up, spread good news through various comment sections, and induce traders to unload/exit at high levels with their analysis. If you dare to take it, the next day it’s a huge loss—this isn’t just once or twice. As the market’s conditions change, this tactic will keep evolving nonstop!

Let’s talk about how, in this kind of market of “training your mindset and testing people’s emotions,”

How to use position management to protect your profits. If you absolutely have to chase the highs and absolutely have to go all-in, even gods can’t save you.

I. End-of-day summary: Weight stocks support the index; growth stocks “bleed heavily”

Today’s market behavior is very clear—an “old seesaw” effect. Funds are doing aggressive rotation and switching positions.

1. Index performance (the heavyweights are propping it up):
   SSE Composite Index: closed at 3,891.86 points, down 0.80%. It fell below the 3,900-point level, but because banks, liquor (baijiu), and other big blocks are holding up, it looks relatively stable.

ChiNext Index: closed at 3,184.95 points, down 2.70%. This is the biggest disaster zone today, because it’s packed with technology and new-energy growth stocks.

2. What’s falling? (the disaster zone):
   Tech and track stocks: semiconductors, CPO, AI computing power, lithium batteries, photovoltaics. These were all popular sectors that had been rising strongly early on. Today funds ran out fastest here—this is “selling aggressively after a high.”

3. What’s rising? (the safe haven):
   Defensive sectors: banks, liquor (baijiu), food & beverage, home appliances, railway infrastructure. When the market panics, funds hide in these “old-timers” that have performance and steady dividends to seek shelter.

4. Key data:
   Trading value: about 1.99 trillion yuan combined for both markets, even higher than yesterday’s volume. This suggests panic selling has appeared—some are cutting losses, and some are catching falling knives. There’s massive disagreement.

II. Position management: How to control the market and protect profits?
In a market like this—“index oscillating while individual stocks plunge”—position management matters more than stock selection. Right now, it’s not a time when you can “buy with your eyes closed and make money.” It’s a time when “whoever has cash in hand is the boss.”

1**. Overall principle: Cash is your shield; refuse to go full position**
Recommended position size: 30–40%.

Logic: The market is in the period of quarter-end settlement, and on top of that, the external environment (for example, the situation in the Middle East, rising oil prices) is unstable, so uncertainty is high. If you keep 50% or more in cash, you have the initiative. If the market keeps falling, you have money to add. If the market rises, you also won’t panic because you have a base position.

Remember: absolutely do not go all-in! At this level around 3,900 points, if you go all-in and you run into a sharp drop, your mindset can easily break down, causing you to cut losses at the lowest point.

2. Portfolio structure: “Play it by splitting your positions”
   Don’t put all your eggs in one basket—set your stop-loss levels.

3. Stock control tricks: For the stocks you hold, how do you manage them to lock in profits?

Wrong approach: add more shares the more the price rises (anti–pyramid scheme); the higher the cost piles up, the more you get trapped with one pullback. The 250-play avoids this

Right approach: If the bottom has dense accumulation of shares, dare to hold a heavy position there (for example, 30–50%). For every rise, reduce a bit—sell more as it goes up, and secure profits by taking them off the table. Add 1, reduce 3—you can’t end up losing

Only look at profits; don’t YY—survive first
In this kind of market, no matter how much profit you have, take profits first and get the money out. Even if it hits limit-up, take it off at 70% first. If the stock you hold has already made you a lot, sell the principal first so the profits keep running in the stock market. No matter how the market falls afterward, you’re still making money, and your mindset will be excellent. And then figure out a way to drive your cost down to the lowest level; control your costs yourself.

Strict stop-loss:
Weak—withdraw immediately. You must stop-loss unconditionally. Don’t fantasize about a rebound. Preserving principal is the top priority.

April is the “earnings validation month”—don’t tell stories; look at the real earnings.

Tomorrow is April 1st; entering the second quarter. Listed companies’ first-quarter reports and annual reports will be disclosed in a dense schedule.

For excellent performers: if earnings are good, today’s drop is just a mistaken sell-off—this is an opportunity.

For pure hype stocks: “story stocks” without earnings support may face a valuation reset/mean reversion, and the risk is very high.

Tonight, go home and check your positions. Cut or reduce those stocks that rely purely on concept hype, have a very high position/price level, and have no earnings support;

Lower your position size. Hold cash. Wait patiently for the market to stabilize (for example, see whether the SSE Composite can hold around 3,850–3,870).

Close of day—no investment or financial management advice of any kind! Whether you lose or make money is determined by traders’ cognition and mindset during trading**